I would prefer that over a massive recession and/or a possible depression.
The predicate here is just plain wrong. Raising interest rates is not the only way to control inflation. I would be in favor of holding spendinig and get Trump back into offce. We can do this without getting unemploymet up over 10 %. What fools. Playing with fire..
Unemployment won’t get to 10%. We gotta burn thru another 5 million just to be in equilibrium. And we are already in a recession - when wages are up 6-7% and inflation is up 9-10%, it’s the same as real wages flat and unemployment up 2%. I’ll be shocked if unemployment goes above 5%.
Yes raising interest rates isn’t the only way to cut inflation, the other is withdraw money from the system. The Fed is also doing that. But when you add 40% money supply in 12 months plus trillions in deficit spending, inflation is what you get. Doing the reverse is the only way to remove that inflation, which is the Fed is doing. The die was cast as soon as governments shut down the economy over Covid and then covered unemployment for over a year